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Q: What causes a drug shortage?

A: GPO's

A: Increasing demand from aging baby boomers

A: Increasing general population

A: Shortage of raw materials

A: Drug recalls by the FDA

A: Drug recalls by the manufacture

A: Resale restrictions

A: Manufacturer inefficiencies

A: Manufacturer stop producing a drug

A: Primary drug supply channel inefficiencies

A: Increased demand from other unforeseen events

Edward Cox, coordinator of the drug shortage program at the FDA, told attendees of a public workshop held on Sept. 26 by the administration, there are several reasons for the increasing shortages: 54% of the shortages in 2010 were due to quality or manufacturing issues; 21% were a result of delays and capacity issues; 11% were due to manufacturer discontinuation of unprofitable drugs; and 5% were a result of problems obtaining reliable raw materials. Many drugs in short supply are low-profit generic injectables, which are susceptible to contamination and also are costly to produce because the manufacturing process needs to ensure against this.

As a small business operating in a multi-hundred billion dollar drug distribution marketplace, Allied Medical Supply and others in the secondary supply channel are not in a position to (nor are we capable of) creating a drug shortage.

Allied acquires product on a real time, on demand basis. As such, Allied does not hoard or stock pile drugs. Drug shortages are impossible to predict and are caused by many factors, all outside of Allied's control. We are simply a sourcing service provider reacting to the demands of our hospital customers.

Allied does not have access to purchase from drug manufacturers or primary drug suppliers as only direct healthcare providers (such as hospitals and doctors) can. In addition, we only purchase drugs from licensed drug wholesalers at the current market price.

Current Drug Shortages:

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